$BTC Gate News reports that on March 9, the U.S. Department of the Treasury acknowledged in a report submitted to Congress that cryptocurrency mixers can be used for legitimate financial privacy purposes. Legitimate users can protect personal wealth, business payments, or sensitive information related to charitable donations through mixers on public blockchain transactions. This marks a shift in stance since the sanctions against Tornado Cash in 2022. The report distinguishes between custodial and non-custodial mixers; custodial mixers have been required to register with FinCEN as money services businesses, but no new restrictions were recommended for non-custodial mixers, nor was there a final determination or support for the record-keeping rules related to mixers proposed by FinCEN in 2023. Instead, it cites the President’s Working Group report, which suggests that the Treasury should "consider next steps" while balancing the risks of illegal finance and privacy concerns. The report also discloses that North Korean cybercriminals stole at least $2.8 billion in digital assets between January 2024 and September 2025 and routinely use mixers for multi-step money laundering. Since May 2020, over $1.6 billion in deposits from mixer services have flowed into cross-chain bridges, with more than $900 million concentrated on a bridge linked to North Korean money laundering. The Treasury recommends that Congress establish a "hold laws" safe harbor mechanism for digital assets, allowing financial institutions to temporarily freeze suspicious assets during short-term investigations, and clarifies AML obligations for DeFi participants. It also proposes adding a "Sixth Special Measure" to the Patriot Act, authorizing the Treasury to impose restrictions on certain digital asset transfers.

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